TMI Blog2018 (3) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... that: - there is no evidence to the effect that the inputs whose value had been written down had been removed from the factory. Thus, reducing the value of the raw materials keeping in view the accounting principles and income tax benefit, if any, it cannot be construed that the value of the inputs are written off from the books of account and are not usable resulting into invoking of Rule 3(5B) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f account but the credit was not reversed as per Rule 3(5B) of Cenvat Credit Rules, 2004. On adjudication the demand was confirmed with interest and penalty. Aggrieved by the said order, they filed appeal before the Ld. Commissioner (Appeals) who in turn, rejected their appeal. Hence, the present appeal. 3. Ld. Advocate for the appellant vehemently argued that the appellant had only written dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aipur - 2012 (283) ELT 276 (Tri. Del). Further, explaining the meaning of written down value in the context of Income Tax Act, 1961, the Ld. Advocate referred to the judgment of Hon ble Supreme Court in the case of Madeva Upendra Sinai Ors. Vs UOI - 1975 (3) SC 765 and the relevant provisions of the said Act, to advance his point of argument that written down value and written off are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion to write of fully or partially has been made in the books of accounts, the manufacturer or service provider is required to pay an amount equivalent to the CENVAT credit taken in respect of the said input or capital goods. 7. On a plain reading of the said Rule it is clear that in the event the value of any input or capital goods before being put to use on which cenvat credit has been ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that there is no evidence to the effect that the inputs whose value had been written down had been removed from the factory. Thus, reducing the value of the raw materials keeping in view the accounting principles and income tax benefit, if any, it cannot be construed that the value of the inputs are written off from the books of account and are not usable resulting into invoking of Rule 3(5B) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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